Auto insurance is going through transformational changes due to weather, telematics, social data and advancement in auto technology. The next generation of insurance pricing will be very similar to utility industry pricing model that will be driven by actual usage, rate tier based on timing of the day, location and the customer risk profile. As auto industry gets matured with driverless car technology, the insurance will be driven by risk profile of car and technology vs. risk profile of individual customer. All data from self driven/driverless car will be fed back to isnruance companies through telematics data. Three insurance suppliers and an auto parts maker have warned in their most recent annual reports that driverless cars and the technology behind them could one day disrupt the way they do business. The industry collected $107.4 billion in passenger car auto insurance premiums in 2013, the latest year for which figures were available, according to the Insurance Information Institute. Self-driving cars could have other effects as well. Insurers expect car- and software-makers to face litigation when crashes do happen, shifting at least some of the expense from consumer auto insurance to commercial liability policies. A 2013 analysis by PricewaterhouseCoopers suggested that the company thinks driverless cars won’t impact their bottom line anytime soon, but that it will, eventually. The use of telematics helps insurers more accurately estimate accident damages and reduce fraud by enabling them to analyze the driving data (such as hard breaking, speed, and time) during an accident. This additional data can also be used by insurers to refine or differentiate UBI products. Additionally, the ancillary safety benefits offered in conjunction with many telematics-based UBI programs also help to lower accident and vehicle theft related costs by improving accident response time, allowing for stolen vehicles to be tracked and recovered, and monitoring driver safety. Telematics also allow fleets to determine the most efficient routes, saving them costs related to personnel, gas, and maintenance.

PND is a digest of pricing focused news, thought leadership, events, training and certification resources for pricing professionals. This Edition is brought to you by: Perfect Price The Perfect Price AI platform makes millions of pricing decisions for forward-thinking companies around the world. Our cloud-based service allows customers to quickly anticipate and react to changes in demand […]

Apple’s (AAPL) is rumored to be offering its upcoming gaming subscription service, Apple Arcade, for $4.99 per month. Guilherme Rambo from 9to5Mac revealed the expected price of Apple Arcade based on a promotional message in one of the application programming interfaces used by the Apple Store app. 9to5Mac gained access to a special early access […]

Timing is everything. On Monday, we explored how we would handle the missing details surrounding Apple’s forthcoming streaming service, Apple TV+, including the still unknown cost and launch date of the platform. Today, we may have been given an answer on the former. Apple is reportedly “weighing” a $9.99 per month cost following a free […]

AT&T is now charging up to $135 a month for the online video service formerly known as DirecTV Now. DirecTV Now launched in 2016 with plans ranging from $35 to $70 a month for 60 to 120 channels. There have been several price increases and a reduction in the number of channels since, resulting in […]

TWIP is a digest of pricing focused news, thought leadership, events, training and certification resources for pricing professionals. This Edition is brought to you by: The Perfect Price AI platform makes millions of pricing decisions for forward-thinking companies around the world. Our cloud-based service allows customers to quickly anticipate and react to changes in demand in real-time […]